MANAGEMENT

Detailed explanation-1: -Risk avoidance means completely eliminating any hazard that might harm the organization, its assets, or its stakeholders; and removing the chance that the risk might become a reality. This strategy aims to deflect as many threats as possible to avoid their costly consequences.

Detailed explanation-2: -Risk avoidance and risk reduction are two strategies to manage risk. Risk avoidance deals with eliminating any exposure to risk that poses a potential loss, while risk reduction deals with reducing the likelihood and severity of a possible loss.

Detailed explanation-3: -Common risk reduction mechanisms are security measures, policy enforcement, and employee education and awareness, as well as financial and legal positioning.

Detailed explanation-4: -Risk avoidance and risk reduction are both risk mitigation strategies. Risk avoidance means you’re trying to avoid compromising events as a way to eliminate liability exposures. Risk reduction is a way to help you control the damages to your business, like claims or losses.

Detailed explanation-5: -Risk avoidance is the elimination of hazards, activities and exposures that can negatively affect an organization and its assets. Whereas risk management aims to control the damages and financial consequences of threatening events, risk avoidance seeks to avoid compromising events entirely.